RLJ Lodging Trust (RLJ) Investor Presentation summary

Portfolio overview and strategy

• Urban-centric portfolio with over two-thirds of assets in urban markets, targeting growth above industry averages.

• Owns 95 hotels with 21,156 rooms, diversified across Hilton, Marriott, Hyatt, and independent brands.

• Sunbelt markets contribute over 50% of hotel EBITDA, with a strong presence in top U.S. cities.

• Portfolio segmented into urban lifestyle, urban gateway, resort, and urban metro, each contributing distinct EBITDA shares.

• Focus on high-margin, premium-branded hotels in key economic and leisure destinations.

Operating performance and outlook

• Achieved 2.2% RevPAR growth in Q4 2024, outperforming industry and peers, with urban hotels up 3.7%.

• Business transient demand rose ~8%, group bookings up 3.1%, and urban leisure increased 8%.

• Q1 2025 RevPAR up 3.2% in January and 3.9% in February, driven by ADR growth.

• 2025 group booking pace up low-single digits; business transient trends supported by RTO mandates.

• Q1 2025 adjusted EBITDA expected between $74M and $77M, trending toward midpoint to low end.

Growth catalysts and capital allocation

• Phase I and II internal initiatives to generate $14M–$18M incremental EBITDA; Phase I outperformed initial underwriting.

• Recent conversions in New Orleans, Houston, and Pittsburgh completed or on track, with significant ADR and EBITDA lifts.

• Acquired Hotel Teatro in Denver for $35.5M, a high-margin, 110-room boutique hotel in a growth market.

• Additional acquisitions in Boston, Nashville, and Atlanta, targeting stabilized NOI yields of 7.5–8.5%.

• Capital allocated to high-ROI projects, including renovations and new profit centers in key properties.